Assignment: Principles of Banking
The Ascent of Money: Dreams of Avarice
Answer the following essay questions as fully as possible. This will be your study guide for the first exam.
A. In terms of money, what conquest was important to the Spanish conquistadors like Pizzaro?
B. What mistake did the Spaniards make when mining these treasures? What economic problem did this mistake lead to?
C. Define the following term: Inflation
D. The video turns to the discussion of "credit". Why were early lenders looked down upon?
E. What was the major obstacle to development of finance in Europe? Be sure to explain the religious underpinnings.
F. Define the terms: usury, principal, and interest.
G. Explain how "lending" and "credit" became glorious and no longer a disgrace. Be sure to include the important players in this evolution.
H. What was the key to the Medici families astonishing profits?
I. Define the term: diversification (in terms of finance).
J. What is meant by "Subprime America" in the video? In your answer, mention a few of the financial institutions that provide services to this subprime market.
K. According to the video what has become a defining characteristic of American Capitalism?
L. What type of bankruptcy is Chapter 7 and Chapter 13?
M. How does the American ideal of entrepreneurship possibly encourage bankruptcy?